Trade setup for 02nd June



We made another all-time high yesterday. Not only us, but European indices also made lifetime high. We had ITC results and it was good. We need to see if ITC comes out of this 200 range. There are a lot of memes on this stock for being frozen around 200.

SBI made an all-time high. But bank nifty has a long way to go to make an all-time high. 

Now nifty is slightly in the overbought zone. It has rallied more than 500-600 points in 1 week. So there will be some consolidation which is good for a further rally. I am now slightly negative on the markets as crude is inching higher. Higher crude is like slow poison to India. Yesterday's low is a very important level. If that is broken then we will go down more. Today is Wednesday and it is bound to be volatile. But leverages are also not there. So we need to see how things will play today.

Covid is coming down and stock markets have rallied and factored that. Expecting more upmove might be a little risky now. I will be happy if nifty comes below 15k. It's not necessary that banknifty should follow other indices and make ATH. Now a strong reason is needed for the markets to move higher, especially the banks. 

Auto sales data came and as expected, it was bad. Let's see if that will trigger the markets to fall.

Class 12th exams are cancelled and scrapped for this year. 

Many industries like hospitality, aviation are expecting some stimulus from the govt. 

Infosys is doing an internal investigation for an insider trading case. So that might be under pressure today. This is very common in this stock. It is a favourite for insider trading, whistleblowers etc. If there is a huge fall then one can think of making a long term investment in this.

MY TRADES

  1. I thought of doing an earning trade in ITC, but that did not happen as I was not comfortable with the premiums. 
  2. The strangle and straddle which I have executed(in youtube video) is already in profit. No adjustment is needed now. So I am getting an opportunity to show you all the adjustment trade. 
  3. The weekly butterfly and Ironfly which I had done are also in profit. I am planning to close some and take some short trades.
  4. I will be executing the below trades in monthly expiry as I am slightly bearish. I will execute the above strategy if that is broken

    1. +2 X 15500pe
    2. -1 X 15700pe

INTERNATIONAL MARKET

  1. The Dow closed in flat. The Nasdaq was also flat.
  2. Europe was strong and closed in the green.
  3. Today the futures are in the mild green.
  4. Asian markets are mixed. Some are in mild green and some are in mild red. SGX is suggesting a flat opening.
  5. Yesterday's low is the point which we must keep an eye on. 
FII AND DII
  1. Yesterday FII have sold for 450cr and DII bought for 230cr.
  2. After buying for many days, now FII are selling which started yesterday. Today's data will be important which will give us an idea what FII is intending to do.
CRUDE AND $
  1. Crude is rising. It is above $70. OPEC feels that the surplus that they have will be cleared by this month. So keep an eye on this as this decides our markets movement as India is a huge importer of oil.
  2.  Even $ shot up. It is close to Rs 73. 

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